Displaying items by tag: Semen Gresik
Indonesia: Semen Gresik, a subsidiary of Semen Indonesia, will receive a non-cash loan facility worth US$123m from the lender to build a new 3Mt/yr cement plant in Rembang regency, Central Java.
Cement producer PT Semen Gresik, subsidiary of state-owned PT Semen Indonesia, has secured a letter of credit (L/C) facility to help finance the construction of its newest plant. Under the deal, Abdul Rachman, the state lender of Bank Mandiri, agreed to issue L/Cs for Semen Gresik for the next 42 months to support the purchase of machinery or equipment from overseas. The equipment will be used to construct Semen Gresik's new plant in Rembang, Central Java. The plant is worth US$325m and is expected to commence operations in 2016 with a cement production capacity of 3Mt/yr.
The plants will be operated by subsidiary PT Semen Padang and are currently able to produce up to 6.5Mt/yr of cement. "We are looking to increase the annual capacity by 3Mt/yr and the project will need around US$281m in investment," said Semen Indonesia finance director, Ahyanizzaman. "About half of the costs will be financed by our internal funds and the rest by a syndicated loan, led by Mandiri." Supported by the Rembang and Indarung plants, Semen Indonesia's total production capacity will surge to 40Mt/yr by 2017, from the 31.8Mt/yr that has been forecast for 2014.
Myanmar: Indonesia's largest cement producer PT Semen Indonesia, formerly Semen Gresik, has announced that it will build a US$200m cement plant in Myanmar early in 2014 as part of its expansion into the Southeast Asian market.
The company may pitch about US$70m for the plant, which it would set up with its Myanmar partners, as it aimed to control about a 40% stake in the planned joint venture, said president director Dwi Soetjipto in a press event reported by the Jakarta Post. The construction of the cement plant, designated with a capacity of 1Mt/yr, is scheduled to start in early 2014, while operations are expected to begin in 2017. Based on the firm's plan, the new plant will serve the Myanmar market and neighbouring countries like Thailand and Bangladesh.
The move by Semen Indonesia follows its acquisition of Vietnam's largest cement producer, Thang Long Cement Joint Stock Company, in late 2012. It now aims to expand its annual capacity to 6.5Mt/yr from 2.3Mt/yr by establishing two new plants. At home in Indonesia, Semen Indonesia is also preparing for capacity upgrades with the construction of cement plants in Rembang, Central Java and Padang, West Sumatra, both with production capacities of over 2.5Mt/yr.
In 2013 the firm has targeted a domestic market share of up to 44%, up from 41% in 2012, supported by increased output to around 27Mt from 22.6Mt in 2012, according to Dwi. The overall domestic cement market is estimated to increase by more than 10% to 6Mt in 2013, according to the Indonesian Cement Association.
Indonesia: Indonesia's cement sales in November 2012 rose by 17% compared to November 2011, a faster pace than the previous month, according to data from the country's biggest cement firm Semen Gresik.
The sales of 5.23Mt were up by 0.9% compared to October 2012. More than 55% were on the main island Java, with the Molucca islands and Papua posting the highest annual sales growth at 95%.
Between 1 January 2012 and 30 November 2012 sales surged by 15% year-on-year, according to data from the Indonesian Cement Association (ASI). In the first 11 months of 2012 sales rose to 49.9Mt, compared to 43.4Mt in same period of 2011. Over the 11 months, Java consumed 55% of the Indonesian cement total, Sumatra consumed 22% and Sulawesi and Kalimantan each consumed 7.4% of the total.
Vietnam: Indonesian cement producer Semen Gresik has bought the Vietnamese cement company Thang Long Cement. The purchase was included in a conditional sales purchase agreement between Semen Gresik and Ha Noi General Export Import Joint Stock Company (Geleximco). Semen Gresik refused to state the value of the deal or the percentage of shares it had acquired.
"I am afraid we cannot mention it right now, but we are the majority. We will let you know in a month from now," said Dwi Sutjipto, Semen Gresik CEO. With the acquisition Semen Gresik hope to increase its market share and production capacity in Vietnam.
Thang Long Cement has a total production capacity of 2.3Mt/yr. Two new factories are expected to open soon, in the Quang Ninh and Binh Phuoc provinces, increasing the company's total capacity to 6.5Mt/yr.
Indonesia: Cement sales in Indonesia have hit a record high of 5.16Mt in September 2012, according to data from the country's largest cement producer PT Semen Gresik. The amount represents a 34.4% rise compared to the same month in 2011 when sales were 3.84Mt.
September 2012 sales were boosted by increased monthly sales on the main islands of Java and Sumatra. However sales on the island of Moluccas and Papua fell by 21.7% on a monthly basis. The strong September 2012 sales follow a dip in sales in August 2012 due to fewer working days during religious festivities. Domestic cement sales in Indonesia fluctuate with factors such as holidays and government project completion deadlines.
"We expect domestic volume growth of 12.6% in 2012 and 10.8% in 2013, helped by strong marketing sales," commented Teguh Hartanto, an analyst for Bahana Securities in Jakarta.
Indonesia: PT Semen Gresik, Indonesia's largest cement producer, plans to spend US$400m-US$500m to expand its operation into Vietnam and Myanmar by the end of 2012, according to its general director Dwi Soetjipto.
Semen Gresik intends to finance 20% of the expansion with internal cash and the remainder with external sources, possibly from a global bonds issue. In case any negotiations conclude by the end of 2012, Semen Gresik would likely issue bonds in 2013, Dwi added.
The company has been assessing potential local partners for a joint venture for a plant in Myanmar to produce around 600,000t/yr, in which Semen Gresik will contribute US$150m. However, Dwi Soetjipto declined to discuss Vietnamese expansion plans in detail, hinting at an acquisition.
Semen Gresik reported total assets of US$2.25bn at the end of March 2012. The firm's revenues in the first quarter of 2012, rose by 20% year-on-year to US$458m. Its cement sales fell at 4.94Mt in Jan-Mar period, making up 39.3% of Indonesia's market share. Semen Gresik predicts that its cement sales will reach 22.5Mt/yr in 2012, up from 19.72Mt/yr in 2011. Revenues are expected to rise 15% year-on-year to US$1.93bn.
Indonesia: Indonesia's domestic cement sales were 12.5Mt in the first quarter of 2012, up 18.2% year-on-year compared to the same period in 2011, according to data from cement firm PT Semen Gresik. March 2012 sales were 4.4Mt, a rise of 16.2% year-on-year, the data showed, with most sales on the islands of Sumatra and Java.
"Indonesia's low cement consumption of around 199kg/capita in 2011 continues to provide ample room for growth," said Teguh Hartanto, analyst at Bahana Securities in Jakarta.
PT Indocement Tunggal Perkasa Tbk, Indonesia's biggest cement firm by market value, has estimated that national demand for cement will grow by 8-10% as infrastructure projects increase after a government law in December 2011 speeds up land acquisition. The country's cement sales fluctuate month to month depending on factors such as holidays and the government's end-of-year project completion deadlines.
Myanmar: Indonesian giant Semen Gresik has announced plans to build a cement factory in Myanmar with a production capacity of up to 2.5Mt/yr. The project is estimated to cost US$500m according to Ahyanizzaman, the finance director of Semen Gresik.
PT Semen Gresik is one of four state companies asked by the government under Indonesia Incorporated to expand its operations to Myanmar. Ahyanizzaman added that Semen Gresik chose to expand to Myanmar as demand for cement in that country is strong with supplies falling well short of demand. Cement demand in Myanmar is approximately 8Mt/yr compared to a current domestic production of 4Mt/yr.
The three other state companies asked to expand their operations to Myanmar include oil and gas company PT Pertamina, construction company Wijaya Karya and Bank Negara Indonesia.
Indonesia: Indonesia's domestic cement sales grew strongly in February 2012, up by 23.9% year-on-year, according to data from the country's largest cement firm PT Semen Gresik. Sales for the month reached 4.1Mt, slightly higher than January 2012's 4.06Mt.
"Low 2011 loan to GDP ratio at around 30% combined with low interest rates should allow credit to continue growing, paving the way for economic growth," said Teguh Hartanto, deputy head of research at Jakarta-based Bahana Securities. The country's cement sales fluctuate from month to month depending on a variety of factors, including religious holidays, which can delay construction, and the government's end-of-year project completion deadlines.
Indonesia: PT Semen Gresik has announced plans to build a new 0.6Mt/yr, US$133m integrated cement plant at Manokwari in Papua. Company CEO Dwi Sutjipto said that Semen Gresik wanted to 'dominate' the cement market in Indonesia's eastern regions.
The plant will be commissioned in 2014 after the installation of a new packaging plant in the region, which is expected be commissioned by August 2012. The company has announced ambitious plans to develop a large number of new packing plants in strategic areas along the archipelago with the aim of improving product distribution and consequently cutting logistics costs. "Currently, Semen Gresik has 18 packing plants. We hope to have 16 to 17 more in the next five years to lower distribution costs," said Semen Gresik's finance director Ahyanizzaman, who added that each of the 0.2-0.3Mt/yr plants would require an investment of about US$10m.
Semen Gresik expects to complete the construction of at least four packing plants in 2012, with ongoing packing-plant projects at Sorong in Papua, Banyuwangi in East Java, Banjarmasin in Kalimantan and Balikpapan in Riau. "The packing plant in Banyuwangi is almost finished and the Papua plant is about 50% complete. Meanwhile, we are ready to construct the plants in Kalimantan. We expect to build in more areas in Kalimantan but we remain constrained by land acquisition," added Ahyanizzaman.
New packing plants are part of Semen Gresik's effort to improve its distribution, especially in areas in eastern Indonesia, which frequently face delivery hurdles leading to higher cement prices. Each packing plant will bag cement sent from its closest Semen Gresik factory.The Sorong plant, for example, will process cement produced by Semen Gresik's factories in Sulawesi. The packing plant will have a capacity of bagging 0.6Mt/yr. The company is investing around US$22.2m= in the Papua packing plant, which will be supported by a 10,000t silo and a 150m harbour.
The finance director also said that he expected Semen Gresik to increase its revenue by 10-12% in 2012 due to the new plants and ongoing work on integrated facilities at Tuban and Tonasa. The company forecasts a more moderate increase in its net profit due to its capital expenditure. "We estimate a growth of 1-2% in net profit in 2012 compared to 2011," said Ahyanizzaman. "The slight increase is due to the new factories producing below their full capacity."